Arini Capital Management is approaching the final close of its debut European direct lending fund at approximately $4 billion, a fundraise that would position the vehicle among the largest first-time private credit funds in the region.

The London-based credit manager, led by former Deutsche Bank trader Hamza Lemssouguer, began marketing the fund — Arini Direct Lending Fund I SCSp — to investors in March 2025. The fundraise has attracted significant institutional backing, with British Columbia Investment Management Corp. anchoring the vehicle with a $200 million commitment, according to a person with direct knowledge of the matter.

A central element of Arini's European direct lending strategy is its sourcing agreement with Lazard Inc., struck in early 2025, which provides access to the investment bank's European advisory and origination network for middle-market borrowers. The partnership gives Arini a differentiated deal pipeline at a time when competition for European direct lending assets has intensified, with established managers including ICG, HPS, and Ares already deploying multi-billion-euro strategies across the continent.

The fund's scale is notable for a debut vehicle. SEC filings show Arini Direct Lending Fund I reported $1.2 billion in gross assets as of March 2026, suggesting meaningful deployment has already occurred during the fundraising period. The fund is structured as a Luxembourg SCSp, a structure increasingly favoured by European private credit managers for its flexibility and investor familiarity.

Arini's entry into direct lending comes as the European market continues to expand, with managers citing strong demand from sponsors seeking certainty of execution and flexible capital structures. The firm has previously focused on opportunistic and hybrid credit strategies, making the move into direct lending a significant platform expansion.

For LPs, the fundraise signals continued appetite for European private credit exposure, even as concerns around credit quality in certain sectors — particularly US software and technology — have prompted some investors to reassess their allocations. The European direct lending market has been viewed as relatively insulated from these pressures, with lower leverage levels and more conservative underwriting standards than some US equivalents.

The fund targets middle-market borrowers across Europe and is expected to focus on sponsor-backed senior secured credit investments. A final close timeline has not been disclosed publicly.